Public Power Corporation SA Announces Termination Of Contract With Aluminium SA

Friday, 8 Nov 2013 02:31am EST

Public Power Corporation SA (PPC) announced that following the recent Decision (no. 1/2013) of the arbitration tribunal at RAE, which rulled an electricity price to Aluminium SA that is clearly below cost, resulting in significant negative retroactive impact on PPC financials, the Company's Board of Directors decided the immediate termination of the contract with Aluminium SA effective as of November 18, 2013. The relevant termination- notice was sent out on November 7. 2013. In taking above decision, PPC's Board of Directors took into account the following: With the decision by majority vote (2 to 1) of the arbitration tribunal, PPC must supply Aluminium with electricity at a price which is below cost leading to losses for PPC. PPC has to undertake any initiative in order to prevent losses for its shareholders, including the Greek State as major shareholder. The supply of electricity by PPC selectively to Aluminium at a price below cost constitutes a distortion of the healthy competition. PPC is obliged to take any necessary action in order not to grant any state aid which is forbidden by the National and EC legislation.